Meesho Ltd.’s anchor book faced a setback after several major investors pulled out when the Indian e-commerce firm was

said to have allocated about a quarter of the shares in this tranche to SBI Funds Management Pvt., the country’s largest

asset manager, according to people familiar with the matter.

That decision triggered a pushback from other large funds, the people said, asking not to be identified as the

information is private. Meesho is set to open its anchor book — a portion of shares reserved for institutional investors

— on Tuesday ahead of its initial public offering that launches on Wednesday.

Among those who withdrew were Capital Group, Aberdeen Group Plc, Norges Bank Investment Management, ICICI Prudential

Asset Management Co., Nippon India Life Asset Management Ltd. and Nomura Asset Management, the people said. Many had

sought allocations on par with those of SBI Funds and opted out in what was viewed as a protest, they added.

Even so, Meesho’s anchor lineup features several global investors, including sovereign wealth funds such as GIC Pte and

Abu Dhabi Investment Authority, alongside major long-only investors like Fidelity International, BlackRock Inc., Baillie

Gifford, as well as global firms like WCM Investment Management and Dragoneer Investment Group LLC, the people said.

To be sure, the anchor allotment process is still ongoing, and the final investor lineup may change.

The episode underscores the intense demand for India’s tech startups as they move toward public listings. Recent IPOs

from digital platforms including Urban Co. and Billionbrains Garage Ventures Ltd. — the parent of discount broker Groww

— have drawn heavy demand, reflecting consumers’ rapid shift toward online services and commerce.

Representatives for Capital Group and Aberdeen declined to comment. Spokespersons at Meesho, SBI Funds and the other

investors didn’t respond to requests for comment.

The Bengaluru-based marketplace, which links small manufacturers with price-sensitive consumers in smaller Indian

cities, aims to raise as much as 54.2 billion rupees ($603 million). The shares are priced in a range of 105 rupees to

111 rupees apiece, according to a newspaper advertisement published Friday.

Existing shareholders, including Elevation Capital V Ltd., Peak XV Partners Investments V and Meesho’s founders will

sell shares in the offering.